Crude oil prices came under pressure on Tuesday, with the barrel of West Texas Intermediate dropping to a session low of $45.53 in the NA session. As of writing, the barrel of WTI was trading at $45.95, losing nearly 1% on the day.
Any recovery attempts witnessed in crude oil prices struggle to become sustainable as the rising U.S. production continues to counter OPEC's efforts to rebalance the market. Yesterday's rise had been fueled by the rumors that a possible extension to the OPEC, non-OPEC supply cut deal could extend beyond 2018. However, a recent report from the EIA revealed that the U.S. crude output could continue to rise in 2017.
In its recent Short-Term Energy Outlook report, Energy Information Administration forecasted the 2017 U.S. crude oil production to rise by 440,000 bpd (vs 350,000 bpd previously). Now the investors turn their attention to API's weekly crude oil stock report, which is scheduled to be released later in the NA session. A reading that confirms the rising crude output from the U.S. could put further pressure on crude oil prices and push the barrel of WTI lower.
Technical outlook
The first resistance for the barrel of WTI aligns at $47 (psychological level) ahead of $47.75 (May 4 high) and $48.25 (May 3 high). On the flip side, supports could be seen at $45 (psychological level), $44.25 (Nov. 10 low) and $43.75 (May 4 low).
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